What are the tax consequences to the corporation

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Question - Bill incorporated his business four years ago and owns 100 percent of its stock. The corporation distributes a piece of land, used as a parking lot for the customers, to Bill. Bill's basis in his stock is $21,000, the land has a basis of $7,000 and a value of $24,000, and E&P is $5,000.

a) What are the tax consequences to the corporation?

b) To Bill?

Reference no: EM131736037

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